India Eyeing Top 3 Global Positions in Advanced Chip Packaging According to NITI Aayog’s 2035 Roadmap

India must act now to build a sustainable and globally competitive semiconductor ecosystem where semiconductors become central to economic growth, national security and technological autonomy, according to NITI Aayog’s roadmap. Future of Indian Semiconductor Industry.

The roadmap prepared in consultation with experts and stakeholders at NITI Frontier Tech Hub says that semiconductors will now play a role in important sectors such as artificial intelligence, telecommunications, e-mobility, defence, healthcare, digital infrastructure and advanced manufacturing. It warns that India’s reliance on imported chips is a strategic vulnerability at a time when geopolitical tensions and technology competition are reshaping global supply chains.

According to the report, the global semiconductor market is expected to cross $1.5 trillion by 2035, while the Indian semiconductor market is expected to reach around $200 billion in the same year. However, nearly 90-95 percent of India’s current demand for semiconductors is met through imports, exposing critical sectors to supply disruptions and foreign exchange flows.

According to the roadmap, India should aim to build a $120-150 billion semiconductor value chain by 2035, focusing on areas where it can become globally indispensable, rather than trying to catch up in the wafer manufacturing race. It identifies advanced packaging, compound semiconductors, mature node manufacturing, design leadership and critical materials as areas where India can build scale and strategic advantage.

The report recommends that India aim to be a top-three global destination for outsourced semiconductor assembly and testing and advanced packaging. It also requires the country to build leadership in broadband materials such as silicon carbide and gallium nitride, which are critical in electric vehicles, renewable energy, telecommunications and power electronics.

According to the roadmap, India’s strategy should be built around five pillars: pioneering, policy and investment, production, people and partnership. These include cross-border R&D, long-term capital mobilization, manufacturing and packaging, skills development and global collaboration.

The roadmap estimates that India will need a cumulative semiconductor investment of nearly $135-180 billion over the next decade. It recommends that the government commit at least a third of this amount to de-risking projects and attracting large private capital.

In terms of production, the report suggests a selective and demand-driven approach. It urges India to focus on mature logic and mixed signal nodes, semiconductor assemblies, advanced packaging and secure manufacturing for defense, aerospace and strategic infrastructure.

The report also cites talent as a critical constraint and says India needs to build a full pipeline of semiconductor talent that includes great technicians, manufacturing engineers, packaging experts, materials scientists and system-level architects.

According to the roadmap, the next decade will be crucial for India’s semiconductor ambitions. With continued commitment, disciplined execution and strategic clarity, India can transform semiconductors from import dependence to a source of economic strength, technological autonomy and global influence.